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Analysts at Westpac are recommending to sell AUD/USD pair at 0.7085 levels, for the target price of 0.6960, while maintaining a stop loss of 0.7120.

Key Quotes

“Rationale:

  • Look to sell AUD into position squeezes.
  • RBA remained on hold with a less emphatic easing bias than anticipated and now leaves the market short AUD
  • RBA highlighted that AUD was at the lower end of its recent range and so that they do not see AUD as overvalued
  • Iron ore production from Brazil is being reduced, this should maintain AU exports at elevated levels but the risk of US imposing trade tariffs on China is likely to severely limit AUD upside
  • Concern over the outcome in AU’s approaching 18th May Federal Elections should also weigh on AUD.”